According to commentaries accompanying the quarterly reports of Dollar General and Dollar Tree, both chains are benefitting from increased patronage by middle-income consumers.  According to Todd Vasos, CEO of Dollar General, the demographic shopping at his stores now earns between $50,000 to $75,000 annually.  In 2021, the average household income of a typical customer was $40,000.  During the most recent quarter, Mike Wytinski, CEO of Dollar Tree, considered that average annual household income of customers was $80,000.

Consumers are contending with an inflation rate that attained 8.5 percent in July compared to the corresponding month in 2021 and with grocery prices north of 12 percent inflation.

Although gasoline and utilities, both major family expenditures, are showing signs of softening, middle income consumers and especially, rural and center city customers, will continue patronizing Dollar stores after inflation eases, provided the stores stock an adequate selection and charge competitive prices.

Subscribers are referred to the second quarter financial reports for Dollar Tree and Dollar General, posted in this edition.